Analysis of the Impact of the Escalation of the China-U.S. Tariff War on the Cryptocurrency Sector
Combining the white paper released on April 9, 2025 (China's position paper on China-U.S. economic and trade relations) and recent tariff policy dynamics, the intensification of China-U.S. economic and trade frictions may have the following multi-dimensional impacts on the cryptocurrency market.
1. The 'double-edged sword' effect of market risk aversion and cryptocurrencies
Short-term panic selling: The white paper mentions that the U.S. has recently imposed 'reciprocal tariffs' and an additional 50% tariff on China and implemented 301 investigation restrictions on industries such as shipping and logistics, leading to increased global market volatility. If traditional markets like U.S. stocks and Hong Kong stocks continue to plummet, cryptocurrencies may also suffer (for instance, Bitcoin fell over 5% in a single day during the market panic in April 2024).